Blockbuster order will make Southwest first to fly 737 MAX
- Updated 11:08 a.m. ET. Next update: By 1 p.m. ET.
Southwest announced a blockbuster aircraft order this morning that"s being called the biggest in Boeing"s history. The order also will make Southwest the launch customer for Boeing"s newest version of its 737, known as the "737 MAX."
The Associated Press writes "the Dallas airline, which operates an all-Boeing fleet, placed a firm order for 150 of the 737 MAX, a new version of Boeing"s most popular plane with more fuel-efficient engines. Southwest also ordered 58 next-generation 737s" and placed options for 150 more 737 MAX aircraft and 78 for the current 737NG model.
PHOTO GALLERY: Behind the scenes at the Boeing factoryCHART: Southwest"s schedule for firm order and options (The Dallas Morning News)BOEING: Special 737 MAX page for Southwest
At list prices, the order would be valued at $19 billion, though AP notes that "because discounts are common, Southwest won"t pay the full $19 billion list price."
Regardless, the order is a whopper.
The Seattle Times writing "the firm order is Boeing"s largest ever both in dollar value and in the number of airplanes."
AP notes that Southwest"s order comes after Indonesia"s Lion Air last month "committed to pay $21.7 billion for 230 Boeing 737s. Lion Air also has options for 150 more planes, valued at $14 billion, bringing the deal"s total potential value to $35 billion."
However, AP adds Lion Air"s order "is not a certainty; it still has to complete the order."
What is certain, however, is that Southwest is now slated to become the launch customer for the 737 MAX, the first of which is scheduled to be delivered to the airline in 2017.
Reporter Terry Maxon of The Dallas Morning News writes:
While Southwest had wanted an entirely new airplane much sooner than Boeing was prepared to produce one, it had to shift its sights, as Boeing had.
THE DALLAS MORNING NEWS: Southwest Airlines orders 150 Boeing 737 MAX jets
On July 20, Boeing announced it would produce its own new-engine variant of the Boeing 737, with American Airlines revealed as the initial customer with an order of 100 of the new version. The Boeing board of directors later officially approved the airplane, and it was given the name MAX.
With Southwest"s just-announced deal, Southwest will now jump ahead of American, which is schedu